Monday has indicated a positive finishing week for the month of August. The month has been rather tough for stocks, as any of the popular indices could show. So this new apparent rally has traders hoping that they can make up for the losses they incurred in the past few weeks in the stocks.
The indices indicate the recent positive turn. The losses they suffered recently were considerable, with the Dow Jones dropping 2.6%, the S&P 500 falling 3.4%, and the Nasdaq collapsing by 4.5%. Now, however, the Dow Jones has risen 0.5%, the S&P 500 is up 0.4%, and the Nasdaq is 0.5% higher. This has put investors feeling way further up.
Surprisingly, the stocks for tech have not been a main contributor to this jump up. Apple and Meta have done well, going higher by almost 1% over the day, but others cannot say they have done so well. Tesla and Nvidia have dropped down by nearly 1%. Furthermore, the Technology Select Sector SPDR Fund has been performing poorly compared to other grouping funds, being the second worst.
Exploring Other Stock Sectors
Areas like industry and energy did exceptionally well in the S&P 500, being possibly the best-performing sector. 3M, a company specialising in building materials and equipment for worker safety, has jumped a staggering 5%. This was after they were supposedly trying to settle a lawsuit of theirs concerning defective earplugs. These will be the kind of defensive stocks investors will be looking for.
Analysts see these price movements as part of a cyclical change in markets. Tech has been growing enormously over the last year. This is due to the boost that AI innovations and other factors have given it. However, you could not expect the growth to last forever. This slowdown was likely eventually, and the stocks of more traditional industries are now taking the lead for the time being. Cyclical stocks will do well for now.
